William Giese operates the Giese Broadcast Company. His postclosing trial balance on December 31, 2016, is as

Question:

William Giese operates the Giese Broadcast Company. His postclosing trial balance on December 31, 2016, is as follows:

Giese agrees to enter into a partnership with Hazel Borris, effective January 1, 2017. Profits and losses will be shared equally. Giese is to transfer the assets and liabilities of his store to the partnership after revaluation as agreed. Borris will invest cash equal to one-half of Giese's investment after revaluation. The agreed upon values are Accounts Receivable (net), $9,600; Merchandise Inventory, $184,000; and Fixtures and Store Equipment (net), $176,000. The partnership will operate as the Giese-Borris Broadcast Company.
Instructions
1. In general journal form, prepare the entries to record the following on the books of the partnership:
a. The receipt of Giese's investment of assets and liabilities in the partnership.
b. The receipt of Borris's investment of cash.
2. Prepare a balance sheet for Giese-Borris Broadcast Company for January 1, 2017.
Analyze: By what net amount was Giese's equity adjusted before the partnership was formed?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...